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NY A83535





June 11, 1996

MAR-2-84:S:N:N4:102 A83535

CATEGORY: MARKING

Mr. Robert M. Barr
United Rebuilders, Inc.
450 E. Sandford Blvd.
Mt. Vernon, N.Y. 10550

RE: COUNTRY OF ORIGIN MARKING OF IMPORTED REMANUFACTURED CAST IRON AIR CONDITIONING COMPRESSORS; ARTICLE 509

Dear Mr. Barr:

This is in response to your letter dated April 30, 1996 requesting a ruling on whether the proposed method of marking the container in which the remanufactured air conditioning compressor is imported with the country of origin in lieu of marking the article itself is an acceptable country of origin marking for the imported compressor. A marked sample container was not submitted with your letter for review.

In your letter you stated that you periodically send a truckload of "salvaged" compressors down to a Mexican plant. The units are then torn down, cleaned, checked for wear and damage, fitted with new U.S. made components where necessary, reassembled, painted and tested. The units are then packaged in individual cartons which are clearly marked "Re-Mfd In Mexico". The units are shipped back to the U.S. where they are primarily sold to air conditioning contractors. It is your opinion, with which we agree, that the contractor is the ultimate purchaser of these compressors. This is not a do-it-yourself type item that is sold in over-the-counter retail operations.

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the interim amendments to the Customs Regulations published as T.D. 94-4 (59 Fed. Reg. 109, January 3, 1994) with corrections (59 Fed. Reg. 5082, February 3, 1994) and T.D. 94-1 (59 Fed. Reg. 69460, December 30, 1993). These interim amendments took effect on January 1, 1994 to coincide with the effective date of the NAFTA. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in T.D. 94-4 (adding a new Part 102, Customs Regulations). The marking requirements of these goods are set forth in T.D. 94-1 (interim amendments to various provisions of Part 134, Customs Regulations).

Section 134.45(a)(2) of the interim regulations, provides that "a good of a NAFTA country may be marked with the name of the country of origin in English, French or Spanish. Section 134.1(g) of the interim regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules.

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d) of the interim regulations, provides that the ultimate purchaser of a good of a NAFTA country is the last person in the United States who purchases the good in the form in which it was imported. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser. In this case, the ultimate purchaser of the compressor is the contractor who purchases the product for ultimate installation at his customers premises.

An article is excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and section 134.32(d), Customs Regulations (19 CFR 134.32(d)), if the marking of a container of such article will reasonably indicate the origin of such article. Accordingly, if Customs is satisfied that the article will remain in its container until it reaches the ultimate purchaser and if the ultimate purchaser can tell the country of origin of the compressor by viewing the container in which it is packaged, the individual unit would be excepted from marking under this provision.

Remanufactured air conditioning compressors which are imported in containers that are marked in the manner described above, are excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and 19 CFR 134.32(d). Accordingly, marking the container in which the compressors are imported and sold to the ultimate purchaser in lieu of marking the article itself is an acceptable country of origin marking for the imported units provided the district director is satisfied that the article will remain in the marked container until it reaches the ultimate purchaser.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Karl J. Riedl at 212-466-5493.

Sincerely,

Roger J. Silvestri
Director

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